Greece to unveil painful 2016 draft budget

October 5, 2015 06:18
1 minute read.


Dear Reader,
As you can imagine, more people are reading The Jerusalem Post than ever before. Nevertheless, traditional business models are no longer sustainable and high-quality publications, like ours, are being forced to look for new ways to keep going. Unlike many other news organizations, we have not put up a paywall. We want to keep our journalism open and accessible and be able to keep providing you with news and analyses from the frontlines of Israel, the Middle East and the Jewish World.

As one of our loyal readers, we ask you to be our partner.

For $5 a month you will receive access to the following:

  • A user experience almost completely free of ads
  • Access to our Premium Section
  • Content from the award-winning Jerusalem Report and our monthly magazine to learn Hebrew - Ivrit
  • A brand new ePaper featuring the daily newspaper as it appears in print in Israel

Help us grow and continue telling Israel’s story to the world.

Thank you,

Ronit Hasin-Hochman, CEO, Jerusalem Post Group
Yaakov Katz, Editor-in-Chief

UPGRADE YOUR JPOST EXPERIENCE FOR 5$ PER MONTH Show me later Don't show it again

ATHENS - Greece will unveil a painful 2016 draft budget on Monday meant to satisfy international creditors, projecting the economy will stay in recession next year before returning to growth in 2017, in line with the estimates by the country's lenders.

After seven months of heated negotiations with its EU/IMF creditors, Athens agreed in July to implement spending cuts and economic reforms in exchange for an 86 billion euro bailout that kept it in the euro zone under strict supervision.

Although government officials have expressed optimism that the recession this year will be milder than projected in the bailout program, due to an increase in tourism revenues and stronger than expected first-half data, any change in the economic forecasts will only come later.

The debt-ridden economy is officially expected to shrink by 2.3 percent this year and 0.5 percent in 2016. Public debt is seen rising to 196 percent of gross domestic product in 2015 and peak at 201 percent in 2016, including the new loans.

"The main targets of the draft budget will not differ from the estimates in the bailout," a finance ministry official told Reuters.

"Our estimate is for a shallower recession this year and that might be reflected in the final budget that will be submitted to parliament in November, after the first review of the new program," the official said.

The bailout projects a 0.25 percent primary budget deficit before debt service this year and a surplus of 0.5 percent next year. Greece is meant to achieve a primary surplus of 3.5 percent of GDP a year from 2018 under the August deal.

Related Content

Breaking news
August 15, 2018
15 Palestinians arrested overnight by security forces